Berkshire Hathaway to buy stake in Pilot Flying J

OMAHA, Neb. — Berkshire Hathaway Inc. will acquire a minority interest in Pilot Travel Centers L.L.C., which does business as truck stop chain Pilot Flying J, and, by 2023, will become majority owner of the company.

According to a news release, Warren Buffett's Berkshire Hathaway will acquire 38.8 percent equity in Knoxville, Tenn.-based Pilot Flying J, which generates more than $20 billion in annual revenue.

The Haslam family will continue to hold a majority interest in the company with a 50.1 ownership stake, while the Maggelet family's FJ Management Inc. will retain an 11.3-percent share. Jimmy Haslam, owner of the National Football League's Cleveland Browns, will continue as Pilot Flying J's CEO, and the rest of the firm's management team also will be retained, according to the news release.

Under terms of the plan, Berkshire will acquire another 41.4 percent of the company and become the majority shareholder in 2023. At that point, the Haslam family will retain a 20-percent share and remain involved in the operation.

Financial terms of the deal were not disclosed.

"Pilot Flying J is built on a longstanding tradition of excellence and an unrivaled commitment to serving North America's drivers," Mr. Buffett, 87, said in a statement. "Jimmy Haslam and his team have created an industry leader and a key enabler of the nation's economy. The company has a smart growth strategy in place, and we look forward to a partnership that supports the trucking industry for years to come."

Pilot Flying J, which started as a single gas station in Gate City, Va., in 1958, has more than 750 retail locations in 44 states, as well as more than 100 roadside assistance trucks as part of its Truck Care Program. It also operates 44 Goodyear Commercial Tire and Service Centers and 35 Boss Shops. Total employment is 27,000.

Mr. Haslam said this was an ideal opportunity. "As a family business that has evolved and prospered over the last six decades, we knew that any potential partner would need to share our commitment and have a proven track record as a long-term investor," he said. "We have that in Berkshire-Hathaway — they believe in our strategy, support our team and are excited to see Pilot Flying J grow."